Dean Matthew is fighting a lien-levy, and IRS folds on the eve of trial.

“IRS is conceding that petitioner Dean Matthew Vigon is not liable for the penalties at issue in this case; that the process of abating those liabilities is almost complete; that the process of releasing the liens at issue has been initiated; and that once those processes have been completed, the IRS intends to file a motion to dismiss the case on grounds of mootness.” Order, at p. 1.

Sounds pretty good if you’re in Dean Matthew’s position, no? So why is Judge Gustafson designating this order?

It’s not because he wants to commend IRS’s counsel for “prompt and efficient work on this case”, although he does that, too.

No, because dismissing a collection case for mootness, where petitioner challenges liability for the tax at issue, doesn’t do enough.

“We understand how collection issues under section 6330(c)(2)(A) become moot if collection activity ceases. It is less clear how a liability challenge under section 6330(c)(2)(B) becomes moot merely upon an announced concession, which would not seem to have any res judicata or collateral estoppel effect. Perhaps a CDP petitioner who makes a liability challenge that the IRS concedes is entitled to decision in his favor on the liability issues.” Order, at p. 1.

Prompt and efficient IRS counsel, take the hint.

It’s decision document time, and Judge Gustafson gives IRS counsel until March to do so.

An author, teacher, advocate and trusted advisor, Lew Taishoff is a New York City-based attorney with 51 years of experience in corporate and individual tax and real estate matters. He is an Enrolled Agent, examined and admitted to practice before the Internal Revenue Service, and admitted to practice before the United States ... Continue reading →